Spotify just acquired the Echo Nest, a company that analyzes music data and gives you recommendations for songs to listen. This is a clever move by Spotify as the company it has brought, also powers some of the biggest radio apps in the music industry i.e Spotify’s home ground.
You ask what are some of the biggest radio apps in the industry? They are, not in order: Rdio, iHeartRadio, Nokia MixRadio, Twitter Music, etc. And yes, all these are powered by Echo Nest. So you can very well imagine the impact of this acquisition.
Spotify now owns a company that powers it’s rivals. Yeah, that is about how deep it can get. Spotify can theoretically control what it’s rivals are capable of.
The Echo Nest will still remain open and free and available for use to any non-commercial uses. The contracts Spotify’s rivals have made with The Echo Nest will also be fulfilled. What hasn’t been revealed is whether they will be able to renew their contracts….or not.
Yeah, this is a time to worry. Real time to worry. The companies have to whip up a backup plan real fast else they will be sorry when they will (most probably) be kicked out off The Echo Nest.
One of Echo Nest’s members, Paul Lamere, went to his blog to write (excitedly, we might add) about the acquisition:
“I am incredibly excited about becoming part of Spotify, especially because of what it means for The Echo Nest API. First, to be clear, The Echo Nest API isn’t going to go away. We are committed to continuing to support our open API. Second, although we haven’t sorted through all the details, you can imagine that there’s a whole lot of data that Spotify has that we can potentially use to enhance our API. Perhaps the first visible change you’ll see in The Echo Nest API as a result of our becoming part of Spotify is that we will be able to keep our view of the Spotify ID space in our Project Rosetta Stone ID mapping layer incredibly fresh. No more lag between when an item appears in Spotify and when its ID appears in The Echo Nest.”
Due to this acquisition, Spotify will become more intelligent and will actually recommend songs you may actually want to hear. Spotify has played it’s cards well. Due to the acquisition, Spotify is controlling every aspect of it’s rivals and therefore leading the industry.